ENP Newswire -
Release date- 13062014 -
The business review initiated in January to address the Company's financial requirements is continuing, with discussions ongoing with multiple parties about a range of potential investment or asset sale transactions, with a view to repaying the outstanding loan due to Avocet's largest shareholder
In the meantime the Company has taken further steps aimed at reducing costs and minimising capital expenditure at Inata, in order to manage the mine's limited cash resources in the period leading up to commissioning of the new carbon blinding circuit. During the period leading up to commissioning of the new circuit, Inata is reliant on low grade oxide ore, as it preserves higher grade transitional and fresh ore, which is more carbonaceous and would deliver much lower recoveries if processed through the current plant configuration.
Following commissioning of the carbon blinding circuit, which is now expected in
It also stated that according to the estimated life of mine plan Inata should generate pre-financing cash flows in 2015-2018 of approximately
These changes, which are provisional pending completion of technical work in a number of areas, reflect a number of amendments, including the following:
the exclusion from the life of mine plan of high grade inferred material at Souma South pit representing approximately 56,000 contained ounces, pending further drilling work. The life of mine plan still includes high grade inferred material at Souma Central pit;
increased waste stripping volumes at Inata North and Central pits and
higher operating costs, working capital and mine closure costs towards the end of mine life than assumed in the previous estimate.
Importantly, the life of mine plan does not include any of the following possible sources of additional value at Inata, which the Company will continue to investigate:
further cash savings from reducing Inata's cost base and achieving working capital efficiencies;
Souma South pit or any of the remaining areas at Souma other than Souma Central;
new sources of oxide elsewhere in the Belahouro district and
heap leaching of lower grade material.
Further updates will be given as appropriate and when the work on the new life of mine plan is complete.
Tel: +44 20 7766 7676
Tel: +44 20 7861 3800
NOTES TO EDITORS
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